So Xbox 720 6x as powerful as Wii U plus cost 2x
plus as much as Wii U?

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If this is based on the recent rumors (PS Omni at 2-3x, Xbox 720 at 5-6x), then you should remember they had the price around $400 with a subscription model, similar to the "$99" Xbox 360s you can buy now (but $300 more expensive).

Likewise, it's possible that the extra features (such as that holodeck-esqe Kinect-projector combo) would be sold apart from the console. Remember - if Nintendo sold the GamePad separately, they could probably sell the Wii U for $200-$250 instead of $300-350.

*****EDIT*****Incidentally, I'm willing to bet that this next generation will be shorter than this one. This generation was really an anomaly when it comes to generations - it was the first time a company ever climbed in the sales rankings, with Nintendo going from 3rd to 1st, it had the most sales growth (in raw numbers and percentages) any company has ever had while also having the slowest industry growth since 1982, it was the first time the best-selling console had the worst attach rate, the first time a console had a failure rate of over 50%, the first time multiple companies took $200+ losses (forcing them to extend the life of the hardware to recover from said losses), and the first time non-SD video became standard (all 360 and PS3 games supported HD, while all Wii games supported ED). All of this adds up to a really long generation, and there's very little that'll come close to this in the 8th.

3DS:4897-5935-1924; PS3 sold in anticipation of PS4. If you added CrimsonEnigma, I no longer use the account.'Your opinion does not matter.' -DesperateMonkey

If MS sells at a deep loss then they'll be stuck with that console for 8+ years.Only to be forced to face the next gen Nintendo console that will probably use tech several years newer than what 720 uses.

Or

Sell the console at a high price only to get dominated by Wii U being the MUCH MUCH cheaper console.

Yeah, while it's a bit early to speculate on such things, about the only thing you could probably count on,on this topic, is that Wii U will see a price drop right at or just prior to the release of the "720" or PS4 that boosts casual gamer or family gamer sales off Wii U consoles that holiday season.